Archive for September, 2013

1) … The possibility of withdrawal of US Central Bank monetary stimulus caused investment growth in the emerging markets to collapse beginning in May 2013.

The global central bank credit bubble, BWX, began to collapse, as bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.1% on May 24, 2013, and then to 2.9% on Friday September 13, 2013, on fears of US Fed tapering, with the result that the crack up boom in stocks began to implode; but only reflated with QEternity, on September 18, 2013. The benchmark rate fell to 2.73% the week ending September 20, 2013.

Bloomberg reports on the collapse of state owned banking in India. Record Rout in Government Banks as Buffers Drop: Corporate India. Shares of India’s state-run banks are trading near record-low valuations as concern grows about narrowing risk buffers and rising bad loans. Indian Bank, United Bank (UNTDB) of India Ltd. and Union Bank of India, have fallen more than 55 percent this year to Sept. 12, the most among the nine government banks that are leading declines for India’s 40 bank stocks. Shares of the nine lenders are all trading below the value of their assets amid lower-than-average capital adequacy levels and bad loan ratios that are about double those of private-sector lenders.

Francisco Toro of Caracas Chronicles writes Occam’s razor on sabotage. Willie Neuman’s piece in the New York Times on Maduro’s sabotage-obsession is a pretty good primer for people who haven’t been following the story. It bothers me a bit, though, that he barely mentions, in passing, the government’s obvious political rationale for making up outlandish tales that have no evidence to back them: deflecting blame for its own appalling record of neglect over the nation’s infrastructure. To Venezuelans with dos dedos de frente, this is obvious, but perhaps it is less so for Willie’s readers stateside: the maintenance culture inside Pdvsa and Corpoelec has frayed badly over the last 15 years, leaving a brittle infrastructure that’s given rise to an appalling industrial safety record. At Corpoelec in particular, efforts to face up to the crisis have taken the form of a loosening of safeguards against corruption, leading to the Bolichicos scandals we’re all too familiar with. So not only does the National Grid suck, the billions spent to fix it are being looted.

2) … A disavowment of a Chinese taper stimulated Chinese stocks to rally beginning July 2013.

Tyler Durden writes in Zero Hedge China: No Leverage, No Growth. When it comes to the very simplest axiom on modern Keynesian economics, it seems one can’t repeat it enough times: have leverage, have growth … don’t have leverage, don’t have growth.

That is the main reason why in lieu of any organic credit growth (total consumer bank loans and leases now are still below the level when Lehman filed), it has been up to the Fed to step up and provide “leverage” into the system, in the form of excess reserves, resulting in $2.5 trillion in excess deposits over loans, or just the void filled by the Fed’s printing of lower powered money. That is also the reason why in early summer, China tried to conduct a mini-taper of its own to streamline its monetary pipeline which had been so filled with bad and non-performing credit, that the PBOC effectively pulled the switch on new liquidity for over a month.

What happened almost immediately after, when rates on ultra short term funding soared to 20%+, nearly destroyed the domestic banking system and resulted in a major slowdown in the Chinese economy. “Luckily” for China, its close encounter with the taper was brief, if quite painful, and following a period of shock, the Chinese central bank had no choice but to resume injecting banks with their daily dose of monetary morphine all over again.

This in turn, has brought us to square one: nothing in the local banking system has been fixed, and what’s worse, while China has bought itself a few months respite, the dominant old problem of a collapsing credit impulse, as described before, in the country with the largest corporate credit bubble in the world, is about to come back with a bang in a few short months. In short: China just did what the US has boldly done so many times before kicked the can.

NidStyles comments On December 1913, when the monetary system was fraudulently changed into a debt based fractional reserve monetary system through the creation of the Federal Reserve. Since then, there can be no economic growth without credit growth. Economic growth is tied up to credit growth. If the overall debt of the system was to be reduced then the entire system would collapse into a deflationary death spiral. For this reason, no government in this fiat based currency world should have a balanced budget. They all have to keep a certain amount yearly growth of their national debt. The EU for example is aiming at a yearly growing debt rate of 3% of GDP for each Euro Zone country (they are still far from it though). And Tabarnaque commentsI was about to forget. In case you haven’t seen this classic Youtube Video Money as debt. This is a must be seen in order to understand the monetary system we live in.

Investors bought China’s kicking the can credit rally, from Mid June 2013 to September 13, 2013, as is seen in the ongoing Yahoo Finance Chart of China Financials, CHIX, China YAO, China Industrials, CHII, China Mining, CHIM, and China Real Estate, TAO, providing investment gains of 20%, in just three months; as well as similar gains in Industrial Mining Stocks, PICK, such as RIO, Steel Mining, SLX, such as MT, GSM, as well as in Asia Regional Stocks, Australia Small Caps, KROO, Australia Bank WBK, New Zealand, ENZL, South Korea, EWY, as well as in Distant Regional Stocks, Egypt, EGPT, South Africa, EZA, Argentina, ARGT, as well as in Shipping Stocks, SEA, seen in this Finviz Screener. These stock investments are ready to implode.

On Monday September 16, 2013, Stocks rally, dollar dips as Summers quits Fed race. Marc Jones of Reuters reports that investors wagered that U.S. monetary policy would stay easier for longer should the other leading candidate for Fed chair, Janet Yellen, get the job. Markets had perceived Summers as less wedded to aggressive policies such as quantitative easing and more likely to scale stimulus back quickly than Yellen, who is currently second in command at the Fed.

On Tuesday, September 17, 2013, Volatility, XVZ, and the US Dollar, $USD, traded lower, as World Stocks, VT, traded slightly higher, ahead of FOMC Day. Reuters reports Wall Street ends up amid Fed talks; Nasdaq logs best close in 13 years. US Stocks, VTI, rose on Tuesday on expectations the Federal Reserve will make only modest changes to a monetary policy that has been highly supportive of stocks and other assets.

Gold Mining Stocks, GDX, such as those seen in this Finviz Screener, traded higher, on a slight rise in the price of the Gold ETF, GLD; the internals of their chart patterns suggest that their direction is going higher once again.

Investors have been clamoring for Growth Stocks, Large Cap Growth, JKE, and Small Cap Pure Growth, RZG, have been outperforming their peers, Large Cap Value, JKF, and Small Cap Pure Value, RZV, as is seen in their combined ongoing Yahoo Finance Chart

Aggregate Credit, AGG, rose strongly as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to close at 2.71%, as the Father of QE, Ben Bernanke, called for ongoing monetary intervention.

I comment that when one can not go left or right, and when one can not go up or down, then all one can do is go further in at an accelerated rate. which will result in total destruction known as supernova, in this case Financial Armageddon, a global credit bust and worldwide financial system breakdown, that is foretold in Bible Prophecy of Revelation 13:3-4.

Given the entrenched dependency relationship by the mortgage markets and by the US government on the US Federal Reserve, the Fed’s QE program can be interpreted as a quasi-fiscal policy whose major beneficiaries have been the political class and the banking class. Thus, there will be little incentives for FED officials to downsize the FED’s actions, unless forced upon by the markets. Since politicians are key beneficiaries from such programs, Fed officials will be subject to political pressures.

This is why I think the “taper talk” represents just one of the FED’s serial poker bluffs. The US Federal Reserve called the bluff. The FOMC announced that they will refrain from tapering until supposed evidence will warrant it.

The global system has been acutely hooked on steroids which will only be given up when forced upon by the markets. Such dependency will even be more entrenched.

Such actions by the FED also runs in contradiction to supposed claims of economic recovery as the Zero Hedge rightly observed. It seems the Fed is so scared about something (despite every long-only asset manager telling us day after day that the economy is recovering and the US doesn’t need crisis support… oh and can withstand higher rates) that they have gone against consensus and decided that Tapering now is premature.

FED policy represents a subsidy or transfer of resources to Wall Street and the government diverted from the main street, the economy will hardly post a robust real recovery. And worse, such transfers encourage malinvestments and consumption of capital.

Naturally markets addicted to the FED steroids went into a bacchanalia. The markets has turned into a full Risk ON mode. The taper bluff reinforces the record run for the S&P 500.

QEternity in September 2012 had a 3 month effect of the tempering of bond yields. Confirmation of QEternity will have a shorter duration of impact. In other words, the bond vigilantes will be having a short vacation but they will back soon, perhaps in less than a month.

Back in August PBS Holdings wrote Emerging markets want QEternity. Over the past few years, QEternity is the humorous moniker that’s been used to describe the Federal Reserve’s seemingly never ending monetary stimulus. But the beginning of the end of QE and one of the most liberal monetary experiments in human history is nigh.

But as money flows away from emerging economies back into to developed countries, funding future economic growth and servicing debt becomes more difficult. Also, there’s the problem of containing inflation, which is still too high in BRIC nations like Brazil and India.

Emerging markets have been among the greatest beneficiaries of the Federal Reserve’s five-year easy money cycle. Essentially, Bernanke & Co. encouraged the “risk-on” trade of owning riskier assets by pushing investors out of low-yielding “safe” assets.

On Wednesday September 18, 2013, a QEternity rally drove the Emerging Market Stocks which had sold off, strongly higher, as is seen in the combined ongoing Yahoo Finance Chart of New Zealand, ENZL, Chile, ECH, Malaysia, EWM, India, INP, and especially thailand, THD, Philippines, EPHE, Turkey, TUR, and Indonesia, IDX, with the latter recovering 20% from their sell off lows.

Mike Mish Shedlock writes One sided risk assessment. The Fed sees risks all the time. But it’s all one-sided. The Fed never sees risk in tightening too little. The Fed always sees risks in tightening too much. The result is a series of bubbles of ever-increasing amplitude.

On Thursday September 19, 2013, Stocks soared In overnight trading. Benson te writes Asian markets jump on the FED’s QE extension. The reality is that all these stock market-currency market movements have been representative of the pricing of distortions brought about by FED and other central bank policies that has nurtured the market’s addiction to low interest rates environment and the subsequent credit fueled asset boom that has largely little to do with “fundamentals” or the real economy. Europe’s parallel universe should be a prime example. What really has been a bubble has been misconstrued as a boom. Eventually booms end up in busts and crises as have been through history.

And in overnight trading, AP reports Fed shock sweeps through financial markets. Global stocks surge after Fed maintains stimulus in surprise move. The response in financial markets was immediate, tocks around the world surged, with the major U.S. indexes and Germany’s DAX striking record highs, while the dollar and U.S. government bond yields were pummeled. Commodities, such as oil and gold, were also in demand as were financial assets in many emerging markets as much of the money generated by the stimulus over the years has been invested around the globe to seek potentially higher returns. “Given the extreme moves in financial markets overnight and this morning, some participants have been on the receiving end of a short and sharp lesson on the dangers of attempting to second guess the U.S. Federal Reserve,” said Brenda Kelly, senior market strategist at IG.

The chart of the US Dollar, $USD, shows a slightly higher close at $80.50. The Chinese Yuan, CYB, as well as Major World Currencies, DBV, Emerging Market Currencies, CEW, traded slightly higher to a rally highs; these are now primed for a competitive currency devaluation at the hand of currency traders as investors derisk and deleverage out of World Stocks, VT.

Yahoo Finance reports that EUR/JPY blasted higher to close at 134.5 but below its recent high of 135, as the Euro, FXE, closed at 133.87, and the Japanese Yen, FXY, shows close lower at 98.41. The Stockcharts.com chart of EURJPY shows what may turn out to be a dark cloud covering evening star candlestick, communicating an end to Liberalism’s carry trade investing.

The Stockcharts.com charts of World Stocks relative to Aggregate Credit, VT:AGG, Nation Investment relative to World Government Treaury Bonds, EFA:BWX, and Eurozone Stocks relative to EU Deb, EZU:EU, communicate the end of Liberalism’s credit induced speculative leveraged invesing, as well as the achievement of peak wealth: Liberalism’s fiat wealth system is at its zenith

The Interest Rate on the US Ten Year Note, ^TNX, traded slightly higher to close at 2.75%.

CNBC reports Eurozone’s North South divide to widen further. Economic differences between the euro zone’s core and periphery are their most marked in over 10 years, according to a new report, and look set to widen as the region’s nascent recovery takes hold.

Professional services firm Ernst and Young (EY) said that euro zone countries were now at their most economically divergent since the early 2000s, according to its “convergence indicator,” which takes into account variables including gross domestic product, inflation, unemployment rates and government balances.

The gap can been seen in terms of growth – Germany’s economy expanded by 0.7 percent in the second quarter of this year, but the economies of a number of countries, such as Spain and Italy, continued to shrink – as well across lending and employment.

“Sharp differences in financing conditions and labor market developments will maintain stark divergence between euro zone countries,” according to the Eurozone Forecast, published on Thursday. “This poses a threat to efficient decision-making and further economic integration – both of which are necessary to ensure the eurozone’s stability.”

EY said it expected unemployment in the region to continue to rise, peaking at 12.6 percent in the middle of next year, and warned that the “substantial divergence” in unemployment rates across the continent would persist. It said it expected joblessness in Spain and Greece to peak at 27.6 percent and 29 percent respectively in 2014 – while Germany’s will be remain substantially lower at 5.4 percent.

On Friday September 20, 2013, Volatility, XVZ, rose, as the US Dollar, $USD, rose slightly to close at 80.56. The Market Off ETN, OFF, rose in value. Currency Carry Trades unwound worldwide with the Japanese Yen, FXY, trading higher and individual currencies such as the India Rupe, ICN, and the Euro, FXE, trading lower. Major World Currencies, DBV, and Emerging Market Currencies, CEW, traded lower, causing investors to derisk and deleverage out of World Stocks, VT, and Global Industrial Producers, FXR, such as Boeing, BA.

Masaki Kondo, Mariko Ishikawa and John Detrixhe of Bloomberg report Federal Reserve Chairman Ben S. Bernanke’s surprise decision yesterday to refrain from reducing the central bank’s unprecedented stimulus threatens one of the surest bets in currency markets this year. Traders borrowing funds in Japanese yen and using the proceeds to buy dollars earned an annualized 21% this year through Sept. 17, a record based on data compiled by Bloomberg back to 1990.

Aggregate Credit, AGG, traded unchanged, as the Interest Rate on the US Ten Year Note, ^TNX, traded lower to close the week at 2.73%.

Summary of this financial market trading for the week ending May 20, 2013.

Liberalism achieved peak prosperity on a non taper rally. On going monetization of debt, specifically Ben Bernanke’s call for no tapering, that is for QEternity, made for a sell of the US Dollar, $USD, which closed the week down 1.2% at 80.56, and propelled Nation Investment, EFA, 2.2%, World Stocks, VT, 1.6%, Global Producers, FXR, 1.4%, US Stocks, VTI, 1.3%, and the S&P 500, SPY, 0.8%, to new all time highs.

US Stocks, VTI, rose 1.4%, and the S&P 500, SPY, 0.8%, both to new all time highs, with the chart of the S&P 500, $SPX, showing a rise of 1.3% to its new all time high.

Doug Noland reports Last week set an all-time weekly record for corporate debt issuance. The year is on track for record junk bond issuance and on near-record pace for overall corporate debt issuance. At 350 bps, junk bond spreads are near 5-year lows (5-yr avg. 655bps). At about 70 bps, investment grade Credit spreads closed Thursday at the lowest level since 2007 (5-yr avg. 114bps). It is a huge year for M&A. And with the return of “cov-lite” and abundant cheap finance for leveraged lending generally, U.S. corporate debt markets are screaming the opposite of tightening.

August existing home sales were the strongest since February 2007. National home prices are now rising at double-digit rates. An increasing number of local markets certainly including many in California are showing signs of overheating. Prices at the upper-end in many markets are back to all-time highs. And despite a backup in mortgage borrowing costs from record lows, housing markets have yet to indicate a tightening of Financial Conditions. Clearly benefiting from loose lending conditions, August auto sales were the strongest since 2006.

Anna-Louise Jackson and Anthony Feld of Bloomberg reports More Americans took to the water in new boats this summer, often buying smaller, less expensive models, as the industry is showing signs of a recovery. Purchases of powerboats, which include yachts, pontoons and fishing vessels, rose 18.9% in July from a year earlier, according to Statistical Survey.

Lisa Abramowicz of Bloomberg reports America’s companies, from Apple to Verizon, are saving about $700 billion in interest payments with the Federal Reserve’s unprecedented stimulus. Corporate bond yields over the past four years have fallen to an average of 4.6% from 6.14% in the five years before Lehman Brothers Holdings Inc.’s demise, a savings equal to $15.4 million annually per every $1 billion borrowed. Businesses took advantage of the Fed’s largesse to lock in record low rates, extend maturities and raise cash by selling $5.16 trillion of bonds. ‘The stimulus was a huge saving grace in the economy overall,’ said J. Michael Schlotman, the chief financial officer at Kroger. The grocery store operator that estimates it’s paying about $80 million less in interest than it would have pre-crisis.

I comment that the Fed’s ongoing stimulus has created unprecented inflation in the most debt ridden of stocks such as Kroger, KR, whose stock value has more than doubled since November 2011.

The 37 ETFs seen in this Finviz Screener, have risen strongly under US Fed relentless QE monetary policy, and are poised to fall strongly lower on the exhaustion of the US Fed’s and world central bank’s monetary authority, that is as bond vigilantes, begin calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.75%, and currency traders once again, begin selling Major World Currencies, DBV, and Emerging Market Currencies, CEW, these are XIV, FDN, CARZ, PBS, IBB, RZV, PSCI, FPX, IAI, XTN, SMH, XRT, PJP, PSP, TAN, RXI, FLM, EIRL, WOOD, EUFN, RWW, FXR, BJK, PBJ, EFNL, YAO, PPA, PNQI, EZA, KROO, ARGT, EWY, GNW

Jim Sinclair writes of the Wednesday September 17, 2013, money printing operation by the US Federal Reserve in article QE to infinity. QE is in fact debt monetization but central banks do not want to call it that because the historical and traditional understanding of debt monetization is and will in time follows.

I comment that a re-monetization of the world’s only debt-free money, that being gold, is underway. And that the chart of the Gold ETF, GLD, shows that it entered an Elliott Wave 3 up with a 4.4% rise on Wednesday, September 17, 2013; these are the most powerful of all economic waves, generating the bulk of wealth gains.

Jesus Christ has always been at the helm of the economy of God, Ephesians 1:10, operating in dispensation, that is in active oversight of human economic and political endeavors, for the fulfillment of every age, epoch, era and time period.

Under his administration the fiat wealth of liberalism has been surging ever higher. With Fed Chairman Ben Bernanke affirming QEternity; it’s provision constitutes passing the Rubicon of sound monetary policy, as evidenced by the trade lower in World Stocks, VT, on Friday September 20, 2013 manifesting as Liberalism’s fated day of instability, with the Market Off ETN, OFF, and Volatility, XVZ, as well as TVIX, VIXY, and VIXM, rising in value. Peak Prosperity has come via a policy of investment choice in the moral hazard based fiat money system, which is based on schemes of credit and carry trade investing, all designed for investment gain.

Nikolaj Gammeltoft and Cecile Vannucci of Bloomberg report The next drop in U.S. equities may spur a bigger jump in the Chicago Board Options Exchange Volatility Index as investors rush to cover their record bets against the gauge, according to Societe Generale SA. Hedge funds and other large speculators have more than doubled short positions on VIX futures to 189,020 contracts since the end of June. This year’s rally in U.S. stocks has led to a 19% plunge in the VIX, creating profitable strategies to bet against volatility futures. A decline in equities and subsequent increase in share-price swings would bring losses for VIX short sellers, which may drive them to cover the trades, according to Ramon Verastegui of Societe Generale. Increased demand for the contracts will push volatility higher and may exacerbate the stock-market selloff, he said. ‘The concentrated short in the VIX futures is like a red point if you look at a map of the market, signaling potential risk,’ Verastegui, head of engineering and strategy at the French bank, said. ‘A short squeeze in the VIX will have an impact on the volatility market and that can spill over into other markets, accelerating a move down in the S&P.’

The zenith of liberalism was foretold in the statue of empires, as foretold in Bible prophecy of Daniel 2:25-45, where two iron legs of hegemonic power, would rise to rule the world, these being the British Empire, and the US Dollar Hegemonic Empire, only to experience dissolution into an unstable mixture of ten toes of iron diktat and clay democracy, that is ten zones of regional governance and totalitarian collectivism, this being confirmed by the rise of the Beast Regime of Revelation 13:1-4, to replace liberalism’s Banker Regime. God’s idea of economy has been, is now, and will ever be one of empire. The Libertarian dream of freedom, and free things like “free prices” for labor, for example, is an illusion on both the liberalism as well as authoritarianism “desert of the real”.

Under authoritarianism, the schemes of debt servitude schemes, are the order of the day and include such things as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability; all of which enforces austerity.

As the country at large endures great economic distress, civilian employment has skyrocketed in Washington, DC, where the average federal worker earns more than double the salary of the average worker in the private sector. The parasite-host relationship that exists between the ruling few and the toiling many is rarely so stark.

It’s no coincidence that Murray Rothbard, was also a pioneer in power-elite analysis. For instance, Rothbard’s essay “Wall Street, Banks, and American Foreign Policy,” published as a small book by the Center for Libertarian Studies, proposes that there might be a teensy bit more to American foreign policy than a disinterested dedication to promoting “democracy.”

Consider just a few paragraphs:

A glance at foreign policy leaders since World War II will reveal the domination of the banker elite. Truman’s first Secretary of Defense was James V. Forrestal, former president of the investment-banking firm of Dillon, Read & Co., closely allied to the Rockefeller financial group. Forrestal had also been a board member of the Chase Securities Corporation, an affiliate of the Chase National Bank.

Another Truman Defense Secretary was Robert A. Lovett, a partner of the powerful New York investment-banking house of Brown Brothers Harriman. At the same time that he was Secretary of Defense, Lovett continued to be a trustee of the Rockefeller Foundation. Secretary of the Air Force Thomas K. Finletter was a top Wall Street corporate lawyer and member of the board of the CFR while serving in the cabinet. Ambassador to Soviet Russia, Ambassador to Great Britain, and Secretary of Commerce in the Truman Administration was the powerful multi-millionaire W. Averell Harriman, an often underrated but dominant force within the Democratic Party since the days of FDR. Harriman was a partner of Brown Brothers Harriman.

Also Ambassador to Great Britain under Truman was Lewis W. Douglas, brother-in-law of John J. McCloy, a trustee of the Rockefeller Foundation, and a board member of the Council on Foreign Relations. Following Douglas as Ambassador to the Court of St. James was Walter S. Gifford, chairman of the board of AT&T, and member of the board of trustees of the Rockefeller Foundation for almost two decades. Ambassador to NATO under Truman was William H. Draper, Jr., vice-president of Dillon, Read & Co.

That’s just half of Rothbard’s analysis of the power elite surrounding just one president’s foreign policy team.

Who has benefited from the American warfare state? Who, that is, apart from those with political connections or government jobs? The question answers itself. Everyone else has suffered from the trillions of dollars looted from them so the Pentagon might have the power to obliterate every conceivable enemy city a dozen times over. We have suffered from increased indebtedness, and – because capital formation is undermined by the squandering of resources in war and in massive diversion of resources to the military sector – lower real wages than we would otherwise have enjoyed. We’ve suffered from the civilian research and development that never occurred because the brains behind it were siphoned into military research. The costs go on and on.

Who angled for the Federal Reserve? The American public, or the bankers themselves? Anyone reading Rothbard knows the answer. It is not reasonable to expect us to believe that in just this one case, an interest group coming together to enshrine its preferences in law was doing so entirely for the public welfare.

The Fed, meanwhile, has not “stabilized the economy,” contrary to the usual propaganda, and in recent years gave rise to a housing bubble that wrecked the finances of a great many ordinary Americans. Then, adding insult to injury, it bailed out – on preposterous and indefensible grounds – some of the most reckless and irresponsible institutions.

What has the Fed’s economic planning accomplished for Main Street? The Fed’s planning, according to David Stockman, was based on the “wealth effect”: if the Fed pushed stock prices higher, Americans would feel wealthier and would be likely to spend and borrow more, thereby stimulating economic activity.

The results? Zero net breadwinner jobs created between early 2000 and early 2007. From 2000 to 2012, there have been 18,000 new jobs created each month. That’s about one-eighth of the growth in the labor force over the same period.This is what the average person is supposed to be so grateful for?

The state, in short, enriches itself at the expense of the public it fleeces, all the while using its influence over education, the media, and culture to persuade the people that all this fleecing is good for them, that taxes are donations, and that bombing foreigners on ludicrous pretexts is “serving your country.” It urges the general public to consider the absence of the state as the most horrifying, inconceivable scenario of all.

The libertarian tears off the mask of the state, revealing it as the wealth-destroying, poverty-enhancing instrument of terror and expropriation it is. The advances that constitute civilization, libertarians argue, have resulted not from the orders of hangmen and other executioners, or the social planning of bureaucrats and academics, but from human beings cooperating voluntarily in ways that will amaze and astonish anyone who opens his eyes to see them.

And that makes libertarianism the most liberating political philosophy of all.

In rebuttal to Llewellyn H. Rockwell, Jr, I state that God, and His Son Jesus Christ are sovereign over all; that there are no sovereign individuals, and that there is no human action, as there is only the dispensation of Jesus Christ, Ephesians 1:10, in all things, and that it is Jesus Christ who appoints power structures under both liberalism as well as under authoritarianism. God operates in empires; always has, and always will. He has a King, that being Jesus Christ, and a Kingdom, and it is coming by the Revelation of Jesus Christ, Revelation 1:1, where we are witnessing “those things which must shortly come to pass”, before it begins as the 1000 year rule and reign of Jesus Christ on planet earth.

I’m rejoicing because I know the truth, and it has set me free from the deception of human philosophy of Libertarianism, which is simply just another experience in will worship, that is the worship of human things desired, as communicated by the Apostle Paul in Colossians 2:23.

Now under authoritarianism, the only form of genuine wealth will be diktat and the physical possession of gold, as the diktat money system becomes fully established enforcing austerity; where debt servitude schemes, are the order of the day and include such things as regional framework agreements, bank deposits bailins, new taxes, privatizations, capital controls, austerity measures, and statist vitalizations where banks and other corporations are given charter to operate as public private partnerships for regional economic security, regional stability and regional sustainability.

4) … Regional governance will arise out of the failure of nation investment as well as out of the collapse of the US Dollar and the Rise of the Petro Yuan

Deviant Investor provides the Bill Fleckenstein quote Money-printing cannot solve problems. It doesn’t really give us much gross domestic product growth, as we have seen. It hasn’t really helped on the employment front either, as job growth is meager (of course, it is also hampered by other government policies). What money-printing has accomplished is to push the stock market high enough to cause people to once again become delusional in their expectations” … and Deviant Investor relates To the extent we rely upon the fantasies of ever-increasing debt, money printing, and credit bubbles, we are vulnerable to financial collapses.

Nation Investment, EFA, is now peaking. Yet out of a soon coming Financial Armageddon, a global credit bust and worldwide financial system breakdown, foretold in Bible Prophecy of Revelation 13:3-4. regional governance will rise as leaders meet in summits to renounce national sovereignty and pool sovereignty regionally, for regional security, stability, security and sustainability.

US Dollar hegemony accelerated when massive money printing took place after 2001. As the U.S. government began buying its own bonds with money it printed to keep interest rates low for the domestic market, it dropped the bond yields of countries like Saudi Arabia and China, reinforcing the petro-dollar as a means of global growth and trade.

Now, history is being written in the East, and the petro-yuan will be a driving factor in the rise of the king of the east, who presented in Bible prophecy, will come with a 200 million man army to the Battle of Armageddon.

5) … A Soon Coming Global Credit Bust And Financial System Breakdown Will Lead To The Establishment Of a New Global Religion, Specifically A One World Religion Unifying Mankind.

Libertarian Dr. Ron Paul keynoted the Fatima Center conference “Fatima: The Path to Peace”, held in Niagara Falls, Ontario, Canada on September 8-13, 2013. Other speakers included John McManus, president of the John Birch Society, and William F. Jasper, senior editor of the JBS publication New American. John McManus’ presentation was titled “We’re being led to a one world government and a one world religion”.

It was Milton Friedman who received the Nobel Peace Prize for his Free To Choose economic doctrine that provided Liberalism’s bedrock floating currency regime and which served as the basis for interventionist policies of monetary inflation by the world central banks. Out of the ruin of a soon coming global credit bust and financial system breakdown, a world sovereign, that is a world leader, and a world seignior, that is a top dog banker who takes a cut, will unify the world in the establishment of a one world religion establishing Authoritarianism’s beast regime of diktat.

The first attempt to establish a one world religion was by humans coming together with a single language and migrating from the east, that is the land of Shinar to build the Tower of Babel, Genesis 11. Mitt Vittnesbord writes on the emergence of a one world religion. The word Babel is from the Hebrew Ba-bhel, from Akkadian ba-b-ilu “gate of god.” Bab is the semitic word for gateway or portal and el means deity or god. So Bab-il means gate or portal to god. These people were attempting to unite into a powerful ecumenical force.

Francisco Toro of Caracas Chronicles writes of a state religion in Journey into the heart of Chavista Chronicles. Because chavismo, deep-down, isn’t really a political movement. Its essence is mystical, afro-caribbean, rooted in a form of spirituality that nobody in Germany has any kind of reference point for. What Hugo Chávez brought to Venezuela isn’t a “dictatorship” in any sense that would make sense to Erich Honecker or even Nicolae Ceaușescu. What we have is the takeover of the state, and much of the public sphere, by a new kind of religious cult that borrows heavily from the language of the political left to create a new devotional system.

I reply that those of apocalyptic vision, perceive that Bible Prophecy of Daniel 2:25-45, foretells of the soon coming of a Ten Toed Kingdom of regional governance, consisting of toes, that is regions, consisting of a miry mixture of iron diktat and clay democracy, which is synonymous with the Beast Regime of diktat and totalitarian collectivism, seen in Revelation 13:1-4, will arise out of a global credit bust and financial system breakdown, having its origins in the sovereign insolvency and banking insolvency of the Mediterranean Sea PIGS; the Beast Regime, which is replacing the Creature from Jekyll Island, will be popular with many, even to the extent that they will actually worship this monster, as presented in Revelation 13:3-4.

Through this soon coming financial apocalypse, the sovereignty and seigniorage of the nation state banker regime will fail and a fierce individual committed to policies of regional diktat, and schemes of debt servitude, will come to rise to rule the Eurozone, as foretold in bible prophecy of Daniel 8:23-25. This leader is also presented in Revelation 13:5-10, as the New Pharaoh, who will be accompanied by the New Prophet, Revelation 13:11-17, who will call for emperor worship, Daniel 9:25, and who will introduce the charagma money system, that is the 666 one world currency system, where all will be required to take the Mark, in order to buy or sell, Revelation 13:18.

John the Revelator in Revelation 13:4, foretells that people will worship the Dragon, that is Satan, Lucifer, the Devil, and the Beast as people will be so amazed of the economic recovery that comes through regional governance and totalitarian collectivism, that the trust engendered in the Beast Regime’s diktat, will be defined as worship.

Worship is one thing Satan has always wanted for himself, and he will receive it through the success of the Beast Regime, the Sovereign and the Segnior, as he imbues, and comes to occupy in all three. In Revelation 5, the Lamb is declared worthy to take the scroll and to “receive power and riches and wisdom, and strength and honor and glory and blessing.” But in Revelation 13, it is three Beasts, a Beast Regime, A Beast Ruler, and a Beast Prophet, who take the place of the Lamb and rule over mankind.

I commented on his article relating lease do not include me in the “all hope so”. That end, will not come through Congressional vote. God will soon terminate US Imperium only to raise up Euro Imperium, where a Sovereign, presented in Revelation 13:5-10, and a Seignior, Revelation 13:11-18, that is a prophet and banker, to rule first Europe, and then the entire world from Jerusalem as presented in Daniel 9:25.

Your Austrian Economics moralizing, is spectacular denial of the truth of bible prophecy. I don’t want any morals or ethics coming out of the will worship of any human philosophy or any bankrupt human religion. My values are found in Reformed New Testament doctrine, and my life experience is found in the virtues and ethics are found in the Economy of God, Ephesians 1:10. The Statue of Empires found in Daniel 2:25-45, provides historical proof and presents mankind’s destiny that there be truly hegemonic empires, the last one was the iron leg of the the British Empire, and the current iron leg is the United States, which will fall to the Ten Toed Kingdom of regional government.

Accompanying the rise of the Beast System as foretold in Revelation 13:1-4, which is replacing the Milton Friedman Free to Choose Banker Regime, that commenced beginning with the Greek Bailout I in May 2010, and intensified with the rise of the Interest Rate on The US Ten Year Note, ^TNX, to 2.1% in May 2013, to 2.8% at the end of August 2013, there will soon be a war in Syria as foretold in Isaiah, 17, resulting in the total and absolute destruction of Damascus, and a third world war, foretold in Ezekiel 38.

Illuminati Prophet Albert Pike had Luciferian insight that there would be three world wars. D. Robert Singer writes the article The Modern State of Israel: Providence, Miracle, or What Really Happened. In 1871 Albert Pike founder of one of the Rothschild secret societies, Order of Perfectibilists, received a vision, which he described in a letter dated August 15, 1871 that graphically outlined plans for three world wars that were seen as necessary to bring about the One World Order.

ThreeWorldWars.com writes The Third World War must be fomented by taking advantage of the differences caused by the “agentur” of the “Illuminati” between the political Zionists and the leaders of Islamic World. The war must be conducted in such a way that Islam (the Moslem Arabic World) and political Zionism (the State of Israel) mutually destroy each other. Meanwhile the other nations, once more divided on this issue will be constrained to fight to the point of complete physical, moral, spiritual and economical exhaustion…We shall unleash the Nihilists and the atheists, and we shall provoke a formidable social cataclysm … Then everywhere, the citizens, obliged to defend themselves against the world minority of revolutionaries, will exterminate those destroyers of civilization, and the multitude, disillusioned with Christianity, whose deistic spirits will from that moment be without compass or direction, anxious for an ideal, but without knowing where to render its adoration, will receive the true light through the universal manifestation of the pure doctrine of Lucifer, brought finally out in the public view. [1] [Cmdr. William Guy Carr: Quoted in Satan: Prince of This World, Albert Pike received a vision, which he described in a letter that he wrote to Mazzini, dated August 15,

1871.

Bible Prophecy there will soon be a war in Syria as foretold in Isaiah, 17, resulting in the total and absolute destruction of Damascus, and that following this there will be a third world war as foretold in Ezekiel 38, which will be the basis for the rise to power of Europe’s Sovereign, Revelation 13:5-10, and Revelation 13:11-18, to their power in Jerusalem, as they promote a middle east peace plan, Daniel 9:25.

With the soon coming war in Syria, and all kinds of economic and political implications in my life, I ask myself what is it that want?

Do I want freedom? Do I want free prices, a free market economy, More time? More opportunity to use my talents? Protection of my personal property? More relationships or better relationships?

The only thing I want is to do the Lord’s Will, which is to keep his Word of endurance, and shrink not from His Name, that is presence and authority.

Benson Te writes US Equity Markets: The Deepening Wile E. Coyote Moment the cost of servicing debt has been climbing alarmingly faster than the economy’s ability to pay them (via real economic growth) and from Ponzi finance dynamics, where the liabilities are growing far more than the increases in asset prices.

I comment that the Apostle reveals in Ephesians 1:10, that Jesus Christ is acting in dispensation, that is in oversight of all things political and economic, bringing completion and fulfillment to every age, epoch, era, and time frame.

Liberalism was the era of credit, that is trust, that supported monetary inflation. Jesus Christ terminated Liberalism in August 2013, by enabling the bond vigilantes to call the Interest Rate on the US Ten Year Note, ^TNX, higher, and currency traders to call the Euro, FXE, and other major currencies, as well as the Emerging Market Currencies, CEW, lower since mid August 2013, on competitive currency devaluation, causing debt deflation, in World Stocks, VT.

Money as it has traditionally been known died August 6, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.64%. A new money, that being diktat money, will arise out of a Minsky Moment, that is a sudden major collapse of asset values which is part of the credit cycle or business cycle, as foretold in bible prophecy of Revelation 13:3-4, and will usher in Authoritarianism’s era of debt servitude, as a result of monetary deflation. Liberalism featured credit and a moral hazard based prosperity; but Authoritarianism features a debt servitude based austerity.

2) … Financial market trading for the week ending September 13, 2013

On Monday September 9, 2013, Volatility, XVZ, traded lower, as the stock market turned to Risk On, forcing the Risk Off ETN, OFF, to trade lower, as Reuters report Wall Street rises after Chinese data, deals. Stocks rose on Monday to extend last week’s advance as upbeat Chinese data and merger activity boosted sentiment, and concerns eased about an imminent Western strike against.

The chart of the S&P 500, $SPX, shows a rise to 50 day moving average.

Robert Wenzel of Economic Policy Journal writes So Much for Congress: Kerry Gives Assad One Week Deadline. The Guardian reports: The US secretary of state has said that President Bashar al-Assad has one week to hand over his entire stock of chemical weapons to avoid a military attack. But John Kerry added that he had no expectation that the Syrian leader would comply.

Kerry also said he had no doubt that Assad was responsible for the chemical weapons attack in east Damascus on 21 August, saying that only three people are responsible for the chemical weapons inside Syria – Assad, one of his brothers and a senior general. He said the entire US intelligence community was united in believing Assad was responsible.[…]Kerry said Assad might avoid an attack if he handed every bit of his chemical weapons stock, but added that the Syrian president was not going to do that.[…]

Kerry said the Americans were planning an “unbelievably small” attack on Syria. “We will be able to hold Bashar al-Assad accountable without engaging in troops on the ground or any other prolonged kind of effort in a very limited, very targeted, short-term effort that degrades his capacity to deliver chemical weapons without assuming responsibility for Syria’s civil war. That is exactly what we are talking about doing – unbelievably small, limited kind of effort.”

And Robert Wenzel of Economic Policy Journal writes Rand Paul’s Neocon Meetings. In a Politico blog post on Rand Paul’s position on NSA spying on Americans, I found this side report quite interesting: Paul has had meetings with, among others, Republican mega-donor Paul Singer, a pro-Israel hardliner, and former Mitt Romney adviser Dan Senor. Hmm, Dan Senor. Now that’s a very smart guy who could provide very useful information to Rand on how to run an early presidential campaign and who has the connections in MSM to make sure Rand is treated correctly. Has Politico provided us with an important clue as to who is providing valuable guidance to Rand.

On Tuesday, September 10, 2013, Volatility, XVZ, traded lower, The chart of the S&P 500, $SPX, manifested a strong rise above its 50 day moving average. Liberalism has achieved Peak Prosperity as both World Stocks, VT, Nation Investment, EFA, and Global Industrial Producers, FXR, rose to new all time highs, taking Major World Currencies, DBV, higher to strong resistance, as the Yen, FXY, traded lower, as UK Stocks, EWU, EWUS, such as LYG, rose to rally highs taking the British Pound Sterling, FXB, higher, and as Australia Stocks, EWA, KROO,such as WBK, rose to rally highs taking the Australian Dollar, FXA, higher, as investors cheered the possibility of averting a Western military strike against Syria and China’s economy showed strength, with Bloomberg reporting China August industrial output rises 10.4%.

Tehran Times reports Iranian official, Syrian FM discuss Russian initiative. Damascus and Tehran believe that Russia’s proposal must put an end to hostilities against the Syrian people and to measures [which are taken] to support terrorist and Takfiri groups in the country,” Iranian Deputy Foreign Minister Hossein Amir-Abdollahian said in Moscow on Tuesday following a meeting with Syrian Foreign Minister Walid al-Muallem, Press TV reported.“Damascus and Tehran believe that although Moscow’s initiative provides all sides with an appropriate political opportunity to resolve the Syrian issue peacefully, the entire region must become free of [all kinds of] weapons of mass destruction,” Amir-Abdollahian added.

There is no human action as Libertarians such as Justin Raimondo of Antiwar posts We beat the War Party. Rather, there is only Jesus Christ moving to accomplishing the Economy of God, as described by the Apostle Paul in Ephesians 1:10, specifically to accomplish God’s purposes as foretold in Bible Prophecy, as in today’s case, a soon coming war in Syria, where Damascus will be absolutely and utterly destroyed, according to Isaiah 17:1; and which will serve to draw Russian out military forces to commence World War III, specifically to put hooks in Russia’s jaws, and lead its military forces into the middle east, as presented in Ezekiel 38:1-4, which will be a debacle, that coupled with the failure of credit and the collapse of banking, will terminate the Business Cycle, as well as US Dollar Global Hegemony, and introduce regional governance and totalitarian collectivism, as seen in Revelation 13:1-4. Duane and Shelley Muir of Signposts of the Times write Starting World War III

In 2009, Fed Chairman Bernanke introduced QE1, traded out money good Treasuries, TLT, for the most toxic debt of all types held by the banks, which found their way back to the Fed as excess reserves. This interventionist policy secured investment trust, and reinflated credit worldwide, stimulated global growth and trade, and provided spectacular investment rewards, in such things as Small Cap Value Stocks, RZV, and Global Producers, FXR, through the Leverage Speculative Investment Community, consisting of Asset Managers, such as BLK, Stock Brokers, such as AMTD, Investment Bankers, such as JPM, Banks such as LYG, and Creditors, such as IX.

There is no sustainable economic boom as Jesus Christ operating at the helm of the Economy of God, Ephesians 1:10, enabled the bond vigilantes to rapidly call the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.01% on May 21, 2013, which constituted a “termination event” in Emerging Market Investment, EEM, in Utility Stock Investment, XLU, and in Real Estate Investment, IYR, such as REM, REZ, ROOF, and FNIO. And the further fast rise of the interest rate on August 13 2013, to 2.71%, constituted an “apocalyptic event” which terminated fiat money, in particular Major World Currencies, DBV, and Emerging Market Currencies, CEW, both of which bounced higher in value, in response to the averting of war in Syria.

The crack up boom part of the Business Cycle is now complete as World Stocks, VT, relative to World Treasury Debt, BWX, that is VT:BWX, and Eurozone Stocks, EZU, relative to EU Debt, EU, EZU:EU, have peaked at their all time highs, on margin credit.

Jesus Christ acting in Dispensation, presented in Ephesians 1:10, that is in oversight of all things economic and political for the fulfillment of every age, era, epoch and time period, has completed the paradigm of liberalism and is the paradigm of authoritarianism, by the fast rise in the Interest Rate on the US Ten Year Note, ^TNX, to 2.9%, resulting in the destruction of Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW. Liberal policies of investment choice and schemes of credit that supported capitalism, European socialism, and Greek Socialism, are being replaced by authoritarian policies of diktat and schemes of debt servitude, where banks will be integrated with the government, and be known as the government banks, or gov banks for short, and nannycrats will rule in statist regional public partnerships over the factors of production for regional security, stability, and sustainability, establishing austerity over all of mankind.

On September 11, 2013, the world passed through an epic pivot point on the topping out of stock wealth, VT, as well as exhaustion of the world central banks’ monetary authority to stimulate global growth and trade, as the US Federal Reserve has crossed the Rubicon of sound monetary policy and has made “money good” investments bad, on the rally from defeat of Obama’s Push War In Syria, and as this upcoming Wednesday the Fed will reveal its much-anticipated “tapering” plans.

The most toxic of debt, such as Fidelity’s Distressed Investments, FAGIX, specifically assets taken in by the US Federal Reserve under QE1, Junk Bonds, JNK, Emerging Market Bonds, EMB, and Eurozone Debt, EU, have been the credit basis of Liberalism’s Grand Finale Stock Rally that that began June 2012 with a Euro Yen, EUR/JPY, currency carry rally, and attained its zenith on September 11, 2013, at 133, with Nation Investment, EFA, World Stocks, VT, Eurozone Stocks, EZU, and Global Industrial Producers, FXR, all topping out in value.

Major World Currencies, DBV, and Emerging Market Currencies, CEW, have been trading lower since May 2013, as competitive currency devaluation is underway on debt deflation, in particular World Treasury Bonds, BWX, and Mortgage Backed Bonds, MBB.

The seigniorage, that is the moneyness of the Milton Friedman Free To Choose Floating Currency Regime, based upon national sovereignty of democratic states, failed on May 21, 2013, on the rise of the Interest Rate on the US Ten Year Note, ^TNX, stimulating currencies to fail, giving confidence to the concept that regionalism is rising to replace capitalism and European socialism and Greek Socialism, with the result being that Large Cap Dividend Stocks, Excluding Financials, DTN, such as S&P Telecom, IST, Utilities, XLU, and Pharmaceuticals, PJP, are no longer underwriting Dividend Growth, VIG.

The global debt bubble served to leverage up the most speculative of stocks, such as the vice stocks held in the Fidelity Mutual Fund VICEX, the Casino and Resorts ETF, BJK, as well as Small Cap Value Shares, RZV, such as PSUN, with the result being that the dynamos of global growth and corporate profitability are winding down, and the dynamos of regional security, stability and sustainability are winding up regionalism, and terminating the concept of investment choice.

Investors should start thinking an investment strategy that is based upon the concept that regional leaders, such as the EU Finance Ministers, and regional bodies such as the ECB, are going to introduce regional governance with new taxes, bank deposit bailins, and capital controls.

The topping out of the EUR/JPY at 133 on September 11, 2013, has opened the door to the short selling opportunity of a lifetime where one should commence selling into rallies as they appear, as in a bull market one buys in dips, but in a bear market one sells into pips.

One should consider using the Market OFF ETN, OFF, for the basis for one’s short selling account, as well as buying small amounts of the Gold ETF, GLD, as it dips below 130; and one should consider dollar cost averaging the purchase of physical gold, that is gold bullion as it dips lower, as gold is in a bull market.

The parallel universe and the divergence between stock market performance and economic activity such a GDP, began to narrow ever so slightly on Thursday, September 12, 2013.

Jesus Christ acting in dispensation, Ephesians 1:10, that is working to fulfill and complete every age and era, brought liberalism’s moral hazard based investment prosperity to its zenith on September 11, 2013, on a Euro Yen currency carry trade, and on a Renminbi/Yuan currency carry trade, and now money, that is currency and stock wealth, is dissipating as trust waines in the authority of nation states and central bankers. The result being that the fiat money system, which has been the driving factor for all economic and political activity since 1971 when President Nixon followed Milton Friedman’s advice and took the US off the gold standard, is being replaced by the diktat money system.

Through the failure of money, that is currency and stock wealth, the new paradigm of authoritarianism and trust in regional governance, totalitarian collectivism and nannycrats is commencing, by Jesus Christ laboring in the household administration of God, Ephesians 1:10, to produce a new epoch and time period. There is neither choice nor human action, there is only destiny and fate coming through the movement of the Spirit of God in the lives of people, producing the will of God in all things. It is not as Ludwig von Mises relates “Society lives and acts only in individuals; it is nothing more than a certain attitude on their part. Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore everyone, in his own interests, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us.”

Liberalism was the era of investment choice powered by credit, and was shaped by great leaders; authoritarianism is the era of diktat powered by debt servitude, it will also be shaped by great leaders.

Time Magazine always comes up timely and thought provoking articles. Time Magazine’s cover for the September 23rd issue states How Wall Street Won. And Chris Rossini writes in Economic Policy Journal, The Stalwart thinks that it’s different this time around. You’d think Keynesian Joe would be happy with the big bold letters. Wall Street did “win” right? They got their bailouts, and their fat bonuses, at the taxpayer expense. They also got a slew of QE’s from The Fed to help artificially pump up the stock market again. And let’s not forget that The Fed also “saved the system”. With such a victory, what problem can Weisenthal have? Well, right underneath the prominent headline, it mentions the 2008 crash, and how “It could happen all over again”. Weisenthal will have none of that dispirited talk!

Can’t everyone just wise up and understand just how powerful The FED is? They can counterfeit $1 Trillion per year out of thin air? Who else has that kind of power?

You see, according to Joe, this time is different. This time, the economic laws of supply and demand have been removed from existence. Cause & Effect too…they’re gone. This is typical thinking for those who operate without theory. Keynesians, like Weisenthal, just focus on the latest data (and anyone who reads Joe knows that he’s like a kid in a candy store anytime numbers are released). There’s no perception past that data. This is why Keynesians are always “shocked” when the downturn occurs. Once again, those of us who do see it coming, will have to weather yet another tough economic downturn. And we’ll have to do it with our “shocked” antagonists telling the world that “no one saw it coming.” It’s getting old.

Siite refers us to the Time Media Kit Biographies of Time Magazine Founder Henry Luce. Henry R. Luce, co-founder of TIME magazine, was described in 1961 by Current Biography as “the giant of twentieth-century American journalism.” He served as editor-in-chief of all TIME Inc. publications until 1964, when he resigned and became editorial chairman of TIME Inc.

The camaraderie Luce felt with Hadden continued to develop as the two enrolled together as members of the class of 1920 at Yale University. With Hadden as chairman, Luce served as editor of the Yale Daily News. Luce and Hadden entered Yale’s Reserve Officers Training Corps and both rose to the rank of second lieutenant. Luce often spoke of the countless nights he spent at Camp Jackson in South Carolina with Hadden discussing journalism and the need for a new kind of newspaper or magazine to help educate a misinformed populace. Luce was voted “most brilliant” of his class at Yale and, after graduation, parted ways with Hadden to study history at Oxford University for a year.

Luce returned to the U.S. and accepted a job as a cub reporter at the Chicago Daily News. He joined Hadden in Baltimore in December 1921 where they worked side by side as reporters for The Baltimore News. Nightly discussions of the concept of a newsmagazine led the two, both age 23, to quit their jobs in 1922. Having raised $86,000 of a $100,000 goal, the first issue of TIME was issued on March 3, 1923. Hadden became editor and Luce business manager. With regards to this arrangement, Luce said, “When the Time came to decide who was editor, Brit Hadden just had to be it, so I took the business side.” Luce and Hadden annually alternated year-to-year the titles of president and secretary-treasurer.

Upon Hadden’s sudden death in 1929, Luce assumed the role of editor of TIME magazine.

Henry Luce died in March of 1967 and was remembered by Life magazine as “the most successful editor of his TIME, a great popularizer of ideas, a man who revolutionized modern journalism.”

Wikipedia relates The group Skull & Bones is featured in conspiracy theories, which claim that the society plays a role in a global conspiracy for world domination. Theorists such as Alexandra Robbins suggest that Skull and Bones is a branch of the Illuminati.[20] The yearbook listing of Skull & Bones membership for the 1920 delegation included co-founders of Time magazine, Briton Hadden and Henry Luce.

The society’s current class meets every Thursday and Sunday night during their senior year.[27]

On Friday September 13, 2013, The Interest Rate on the US Ten Year Note, ^TNX, closed at 2.9%. The EUR/JPY closed at 132.02, down from its mid week high of 133.

Sarika Gangar and Veronica Navarro Espinosa of Bloomberg report: “Verizon Communications Inc. and Ecopetrol SA are leading the busiest week ever for dollar- denominated bond sales. Corporate borrowers have issued $80.1 billion of debt this week, surpassing the previous record of $60.4 billion set in March 2012. Verizon’s unprecedented $49 billion offering followed a $2.5 billion sale by Colombian oil producer Ecopetrol and $2.42 billion of subordinated debt from Citigroup Inc. that removes the last vestiges of its government bailout during the financial crisis.”

Puerto Rico, like the nations of Chile, ECH, Peru, EPU, is a failed democracy and has no fiscal or financial seigniorage, as Laura Marcinek and Michelle Kaske of Bloomberg report Popular, Puerto Rico’s biggest bank, extended a three-day slide after the island’s economy shrank and yields on the government’s debt rose past 10%..The shares have declined 15% since their two-year high on Aug. 20. Chief Executive Officer Richard Carrion has sought to rid Popular of bad loans after a $935 million U.S. bailout in 2008. The local economy contracted 5% this year through July, the most since February 2010. Puerto Rico’s bonds rank one step above junk, and yields have soared amid doubt about the government’s ability to carry more debt. Popular’s bailout debt is the largest still outstanding in the Troubled Asset Relief Program’s capital purchase fund. It’s almost three times more than the second-largest debtor, Puerto Rico’s First BanCorp, which owes $254 million.

3) … On Friday September 13, 2013, five years out from the financial crisis, liberalism has produced peak prosperity with World Stocks, VT, Nation Investment, EFA, and Global Industrial Producers, FXR, rising to all time highs.

The collapse of the Investment Bank Lehman Brothers occurred five years ago, on September 15, 2008, and brought to the surface the global financial crisis. In 2009, Fed Chairman Bernanke introduced QE1, traded out money good Treasuries, TLT, for the most toxic debt of all types held by the banks, which found their way back to the Fed as excess reserves. This interventionist policy secured investment trust, and reinflated credit worldwide, stimulated global growth and trade, and provided spectacular investment rewards, in such things as Small Cap Value Stocks, RZV, and Global Producers, FXR, through the Leverage Speculative Investment Community, consisting of Asset Managers, such as BLK, Stock Brokers, such as AMTD, Investment Bankers, such as JPM, Banks such as LYG, and Creditors, such as IX.

This week margin credit drove World Stocks, VT, Nation Investment, EFA, and Global Industrial Producers, FXR, to their all time highs. In the US, VTI, the Russell 2000, IWM, and the S&P 500, SPY, rose for all practical purposes to their all time highs. It has been margin credit coming from the leveraged speculative investment community, specifically Regional Banks, KRE, such as RF, the Too Big To Fail Banks, RWW, such as BAC, Asset Managers, such as BlackRock, BLK, Stock Brokers, IAI, such as ETFC, as well as a topping out of the Euro Yen currency carry trade, that is the EUR/JPY, that has given seigniorage, that is moneyness, to the Russell 2000, IWM, and the S&P 500, SPY, as is seen in the ongoing combined Yahoo Finance Chart of IWM, KRE, SPY, and RWW. Of note, Biotechnology, IBB, Casinos and Resorts, BJK, and Semiconductors, SMH, soared this week, as Volatility ETF, XVZ, and the Market Off ETN, OFF, traded near their all time lows.

There is no sustainable economic boom as Jesus Christ operating at the helm of the Economy of God, Ephesians 1:10, enabled the bond vigilantes to rapidly call the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.01% on May 21, 2013, which constituted a “termination event” in Emerging Market Investment, EEM, in Utility Stock Investment, XLU, and in Real Estate Investment, IYR, such as REM, REZ, ROOF, and FNIO. And the further fast rise of the interest rate on August 13 2013, to 2.71%, constituted an “apocalyptic event” which terminated fiat money, in particular Major World Currencies, DBV, and Emerging Market Currencies, CEW, both of which bounced higher in value, in response to the averting of war in Syria.

The crack up boom part of the Business Cycle is now complete as World Stocks, VT, relative to World Treasury Debt, BWX, that is VT:BWX, and Eurozone Stocks, EZU, relative to EU Debt, EU, EZU:EU, have peaked at their all time highs, on margin credit.

Jesus Christ acting in Dispensation, presented in Ephesians 1:10, that is in oversight of all things economic and political for the fulfillment of every age, era, epoch and time period, has completed the paradigm of liberalism and is the paradigm of authoritarianism, by the fast rise in the Interest Rate on the US Ten Year Note, ^TNX, to 2.9%, resulting in the destruction of Credit, AGG, Major World Currencies, DBV, and Emerging Market Currencies, CEW. Liberal policies of investment choice and schemes of credit that supported capitalism, European socialism, and Greek Socialism, are being replaced by authoritarian policies of diktat and schemes of debt servitude, where banks will be integrated with the government, and be known as the government banks, or gov banks for short, and nannycrats will rule in statist regional public partnerships over the factors of production for regional security, stability, and sustainability, establishing austerity over all of mankind.

4) Summary thoughts on Bible Prophecy and Syria.

If God’s Word of Bible Prophecy be true, Russian President Vladimir Putin who op-ed in The New York Times about Syria, will have to eat his words, “We must stop using the language of force and return to the path of civilized diplomatic and political settlement,” as Damascus will be absolutely and utterly destroyed, according to Isaiah 17:1, and as God will put hooks in Russia’s jaws, and will lead its military forces into the middle east, as presented in Ezekiel 38:1-4, which will be a debacle, that coupled with the failure of credit and the collapse of banking, will terminate the Business Cycle, as well as US Dollar Global Hegemony, and introduce regional governance and totalitarian collectivism, as seen in Revelation 13:1-4. Perhaps one might consider reading Duane and Shelley Muir of Signposts of the Times who appropriately write Starting World War III.

Bloomberg reports Hoyer Says Obama Could Strike Syria Without Congress Vote. The second-ranking House Democrat said President Barack Obama has the authority to use military force against Syria without returning to the U.S. Congress for approval should diplomacy fail to compel Syria to surrender its chemical weapons arsenal. Democratic Whip Steny Hoyer of Maryland said neither he nor House Minority Leader Nancy Pelosi “believe the president is required to come to Congress in this instance, and could act on his own.” He made his comments in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend.

Bloomberg reports Washington Leadership Vacuum Raises Risks of Shutdown. President Barack Obama couldn’t get Democrats to go along on Syria. House Speaker John Boehner couldn’t get fellow Republicans to go along on a budget bill. The one man who has proven he can cut deals with the White House, Senate Republican leader Mitch McConnell of Kentucky, is consumed with a tough re-election bid. It’s enough to have Americans asking: Who’s running Washington

The $US Dollar, $USD, rose 0.9% to close at 82.10, at the edge of a massive head and shoulders pattern going back to March 2013. The Yen, FXY, traded +0.5% higher; but the Swedish Krona, FXS, -2.0, the Brazilian Real, BZF, -1.9, the Australian Dollar, -FXA 1.4, the Euro, FXE -1.2, the Swiss Franc, FXF, -1.0, and the British Pound Sterling, FXB, -0.5.

Sectors and countries traded lower this week reflect the failure of banking and nation investment.

The World has passed from liberalism to authoritarianism on the fast rise in the Interest Rate On The US Ten Year Note, ^TNX, to 2.78%, as the US announced plans for a war in Syria.

Liberalism was fathered by Milton Friedman, who laid the bedrock of Free To Choose economy, with proposing floating currencies, and an abandonment of the gold standard, which featured the development of a Leveraged Speculative Investment Community, where The Too Big To Fail Banks, RWW, Investment Bankers, KCE, and the Asset Managers, such as Blackrock, BLK, seen in this Finviz Screener, coined Liberalism Stock Wealth, VT, with stocks of all kinds such as Life Insurance Company, GNW, Retailer, PSUN, ETFs of all kinds such Small Cap Pure Value Stocks, RZV, and Mutual Funds, such as VICEX.

Jesus Christ acting at the helm of the economy of God, that is in dispensation, of all things economic and political, Ephesians 1:10, produced the sovereignty of democracy, Crony Capitalism Militarism, European Socialism, and Greek Socialism Clientelism, which flourished as the Speculative Leverage Investment Community, IXG, helped give seigniorage, that is moneyness, to Nation Investment, EFA, and Small Cap Nation Investment, IFSM, Global Industrial Production, FXR, all of which soared in value based schemes of credit and carry trade investing, such as Dollarization, POMO, and the EURJPY.

With the failure of Credit, AGG, Money, DBV, CEW, Nation Investment, EFA, Small Cap Nation Investment, IFSM, Global Industrial Production, FXR, and Wealth, VT, Authoritarianism is rising as the new global economic and political paradigm, and features sovereignty of regional nannycrats and regional bodies.

Auhoritarianism is fathered by Angela Merkel, who is engineering the debt servitude economy, under the sovereignty of regional governance and totalitarian collectivism. She is quoted by the Telegraph saying in the Telegraph, Greece should never have been allowed in the euro, and puts the blame on former chancellor Gerhard Schroeder. The debt servitude economy, is seen in the Daily Europe report that references a Tagesspiegel article which argues that Greece must be given more help, either by writing off some of its debts or with a fresh bailout, Commentator Harald Schumman argues.

In Book Going to Tehran, Professor Hillary Mann Leverett presents the idea that America needs to renounce 34 years of failed policy.

An inquring mind asks, what failed policy? The US reigns supreme in the world, largely coming from the fact that the US Federal Reserve has pursued an interventionist monetary policy, that up until May 2013, drove down interest rates, and enabled the US Dollar to serve as the world’s reserve currency, providing monetization of debt and carry trade financing galore for moral hazard based investment choices, providing great reward to those invested in a number of investment vehicles, such as 1) vice mutual funds like VICEX, 2) retail stocks like PSUN, 3) small cap value ETFs, like RZV, 4) nation investment, like EIRL, and 5) global banks, like LYG.

Her thought line presents the concept, Why the United States must come to terms with the Islamic Republic of Iran.

I reply that God never desired that there be any coming to terms with Iran; instead He destined that there be two global kick ass empries, the UK and the US, as foretold in bible prophecy of the statue of empires, seen in Daniel 2:25-45, where liberalism’s two iron legs of global hegemony fail, and a ten toed kindgom of authoritarianism would rise to rule the world, with its toes being regional zones of iron diktat combined with clay democracy, a miry mixture that cannot be sustained; and which will usher in the tyranical end time one world government lasting three and one half years, that is rule in the time known as Great Tribulation.

Yes the US is going to war with Iran; but first, the Isaiah 17 war is coming, where Damascus will be totally obliterated, destroyed, and utterly wiped out; by who, or what, I do not know; but God said it and I believe it.

Then comes the Ezekiel 38 War, a massive middle east confligration, with destination Tehran Iran by Western powers, and destination Jerusalem by Islamic powers.

There will never ever be another realigning of relations with the People’s Republic of China like that in the early 1970s; instead, bible prophecty foretells that a Sovereign System, Revelation 13:1-4, a Sovereign Ruler, Revelation 13:5-10, and a Sovereign Prophet-Banker, Revelation 13;11-18, will come to rule first the Eurozone, and eventually the entire world.

The Sovereign Ruler is known as the Prince who is to come; this Price of the People, will move from Europe to establish his world wide kingdom in Jerusalem, Daniel 9:25.

And then after much global tribulation, this King of the North, will meet his doom on the plains of Megiddo, about 70 miles north of Jerusalem, when the King of the South, Daniel 11:1, and Daniel 11:40-42, and where a 200 Million army man led by the king of the East, will come to challenge him, at which time, Christ will return to establish his Millenial Kingdom.

3) … The Eurozone has achieved Peak Prosperity …. Liberalism’s seigniorage of investment choice is passing away; it is being replaced by authoritarianism’s seigniorage of diktat

Liberalism’s financialization of ADRs of Eurozone companies, especially those in Ireland, EIRL, specifically ICLR, RYAAY, CRH, STX, COV, IR, WCRX, FLTX, as well as European Financials, EUFN, such as Ireland’s Bank, IRE, Spain’s Bank, SAN, and Germany’s Bank, DB, together with the OCB’s interventionist monetary policies of LTRO1, LTRO2, and OMT, together with the leverage of the EUR/JPY carry trade scheme, not only created a great moral hazard based propsperity, but have been responsible for Markit Eurozone Manufacturing PMI® showing Eurozone Manufacturing PMI running to a 26-month high of 51.4 in August, 2013, compared to 50.3 in July 2013.

Jesus Christ operating at the helm of the Economy of God, Ephesians 1:10, enabled the bond vigilantes to rapidly call the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.01% on May 21, 2013, which terminated Emerging Market Investment, EEM, Utility Stock Investment, XLU, and Real Estate Investment, IYR, such as REM, REZ, ROOF, and FNIO. And the further fast rise of the interest rate on August 13 2013, to 2.71%, constituted an “apocalyptic event” which terminated fiat money, in particular Major World Currencies, DBV, and Emerging Market Currencies. And then the announcement of war in Syria, on Saturday, August 24, 2013, quickly drove the Interest Rate even higher to 2.75%, with the result that on Friday August 30, 2013, Volatility, XVZ, entered an Elliott Wave 3 Up, as Eurozone Financials, EUFN, such as NBG, SAN, led Eurozone Stocks, EZU, such as ENL, ALU, SI, CNH, NOK, SNY, NVO, QGEN, MT, TS, LUX, BUD, CGG, DEG, AEG, ING, and Nation Investment, EFA, and Small Cap Nation Investment, IFSM, such as Spain, EWP, Germany, EWG, Italy, EWI, Ireland, EIRL, Greece, GREK, Netherlands, EWN, Norway, NORW, Sweden, EWD, and Switzerland, EWL, lower, inducing the currency carry trade, EURJPY, to close the week 2% lower at 129.75, which constituted “a global financial system meltodown event”, with Global Financials, IXG, manifesting a 3.5% downturn for the week and a 4.8% downturn for the month.

Under the sovereignty of democracy, Crony Capitalism Militarism, European Socialism, and Greek Socialism Clientelism, flourished as the Speculative Leverage Investment Community, IXG, helped give seigniorage, that is moneyness, to Nation Investment, EFA, and Small Cap Nation Investment, IFSM, Global Industrial Production, FXR, all of which soared in value based schemes of credit and carry trade investing, such as Dollarization, POMO, and the EURJPY, to produce liberalism’s peak prosperity and peak manufacturing output, as measured in the Markit Eurozone Manufacturing PMI® .

But now with the death of fiat money, DBV, and CEW, together with a global financial system meltdown, Jesus Christ has terminated liberalism, and is initiating ever increasing authoritarianism, where the Markit Eurozone Manufacturing PMI® , will be turning lower, as inflationism turns to destructionism.

Authoritarianism features the diktat money system, where diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, capital controls, import curbs of branded items, sale of a country’s central bank’s gold reserves, fiscal councils, such as those reported on by the IMF, Case studies of fiscal councils and The functions and impact of fiscal councils, and statist public private partnerships, which oversee regional economic commerce, trade, and the factors of production, when sovereign regional leaders, that is nannycrats, such as Jeroen Dijsselbloem, President of the Eurogroup, and Michel Barnier, EU Commissioner responsible for internal market and services, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability. And diktat money is seen in countries with high current account deficit, such as in India, where import duties have been declared on the import of gold, and the import of gold coins banned; and such as in Indonesia, where curbs are placed on the import of luxury cars and some branded goods.